We all know that many people lost their jobs, houses… after the subprime crisis in 2008. This crisis is the biggest financial crisis ever encountered in human nature so far. Meanwhile, banks are even bigger today than before the crisis and many things haven’t changed… until recently with for example the appearance of many new money transfer services.
Why didn’t money transfer services appear earlier ?
First of all, let’s clarify what we call money transfer services. Money transfer services, are solutions which enable you to transfer your money in many different ways. You can use your credit card, cash, bank transfer, mobile wallets… Some enable you to transfer your money instantly. Others take a few days.
I know you are going to say that banks provide the same services apart from mobile wallets. And you are right. The only thing you might ignore, unfortunately like most people today, is that your bank will charge you 4 times more than most money transfer services. So why didn’t money transfer services appear years ago ? Simply because people trusted their banks too much ! For instance most expatriates use their banks to transfer money from one currency to another. They will see a fix fee of 5-7 euros for the transfer and think this isn’t very expensive compared to the amount sent. In fact, they don’t know that banks take 8% fees in average simply by invoicing hidden fees in the exchange rate! Try for yourself and you will see. The very last time I used my bank 6 years ago to transfer swiss francs (CHF) to euros (€) the exchange rate was 1€ = 1,23 CHF. And guess what, my bank charged me 5 € fix fee for the transfer with an exchange rate of…. 1€ = 1,16 CHF !!!
After I found this out, it was the last time I used my bank to transfer money internationally.
What money transfer services should I use ?
Today, more than 500 serious money transfer services exist and many new one are created each year. We have now moved from the paradox of expensive banks to the one of being lost in the ocean of money transfer services… Especially that the best solution to transfer your money depends on many parameters: the speed of the transaction, the mean (cash, credit card, mobile wallet, money wire…) and what the cheapest solution is. If you would like to find the best solution matching your needs in a few clicks. It will save you precious time in lookinf for the best solution for you. The later might not even be the best solution as most money transfer services aren’t very transparent regarding their fees and change them all the time…
In the end, we should all use a reliable comparison website to transfer our money nowadays and never go through our banks anymore nore stick to a unique money transfer operator